The study looked at how algorithmic trading affects bid-ask spreads and market depth in futures markets. They used data from the Australian Securities Exchange in 2012 when they introduced collocated facilities for FCM's. The research found that after the introduction of colocation, bid-ask spreads and market depth were less sensitive to price volatility and trading activity. Liquidity recovered faster after large trades, suggesting that algorithmic trading helps improve market resilience by reducing the time limit orders are active and adjusting quotes quickly to new information and market changes.